The last year has brought a whirlwind of tax changes, credits, and COVID relief. Here’s what you need to know about your estimated tax requirements:
Estimated tax payments are required if you have a tax liability of $1,000 or more that is not paid through payroll withholdings.
If you wait to pay tax due until your tax return is due, you’ll have to pay penalties in addition to the tax due.
WHEN? Estimated tax due dates:
HOW TO PAY? You also have a couple of payment options:
If you are an employee of your company (e.g., S-Corp owners), and you use Gusto or another payroll system, you can pay your federal and state income taxes through additional tax withholdings instead of making estimated tax payments manually.
Pay by Bank Account (you’ll be charged a fee to pay by credit card)
Reason for Payment: Estimated Tax
Apply payment to: 1040ES
Tax period for payment: 2021
Fill out the rest of the info…
Payment type: 140-ES
Filing status: Choose the status that matches your tax return
Fill out the remaining information
Other state websites: https://taxpayne.com/resources/forms-documents-and-links
If you have an EFTPS account, you can pay electronically. Be sure to initiate payment at least one day in advance of the due date.
You can pay by check if needed. Considering the current IRS backlog, we don’t recommend this. https://www.irs.gov/forms-pubs/about-form-1040-es